Global impacts of LNG exports from the United States

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In a startling about-face, natural gas market forces have reversed course over the past several years. Expectations that the U.S. would become a major importer of liquefied natural gas (LNG) have been replaced by the possibility of the U.S. becoming a major LNG exporter. As a result of a largely unforeseen surge in shale production, North American natural gas prices collapsed from over $10/MMBtu in 2008 to under $3/MMBtu at times during 2012. However, gas prices in Asia and Europe remain high, creating huge price spreads from the U.S. Large price spreads between the U.S. and other regions have enticed foreign buyers seeking lower cost gas to consider U.S. supplies, while U.S. producers yearn for higher prices seen in foreign markets.

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